Wednesday, 12 June 2013

Who Watches the Watchers?



Baltic Dry Index. 825 +10

LIR Gold Target by 2019: $30,000.  Revised due to QE programs.

The court has emerged as the arch-defender of national sovereignty in the EU system, vowing to strike down EU laws that breach Germany’s Grundgesetz and issuing a string of rulings that have constrained Berlin’s ability to take part in EMU bail-outs.

On display today, more of the insane asylum of the EUSSR. Ironically, 68 years after Germany was crushed by America and the British Empire nations, and as America turns itself into the USSR of America, it’s Germany’s constitutional court that has become the last defender of rule of law on either side of the Atlantic.

Below, would any sane, unbribed person want to remain a member of the Bilderberger EUSSR. Stay long physical precious metals held outside of the EU banking system. From the right side of the English Channel Europe looks set to explode with the arrival of autumn.

For as long as but a hundred of us remain alive, never will we on any conditions be 
brought under Brussels/Berlin  rule. It is not for glory, nor riches, nor honours that we are fighting, but for freedom — for that alone, which no honest man gives up but with life itself.

With apologies to The Declaration of Arbroath 1320.

Germany's brother gladiators battle over euro destiny in constitutional court

Germany's two heavyweight members on the European Central Bank have fought an unprecedented duel at the country’s top court, taking opposing sides in a landmark case that could make or break the euro.

Jens Weidmann, the Bundesbank’s hard-line chief, testified that the ECB’s bond rescue plan for Spain and Italy risks “significant losses” for Germany’s central bank and grave damage to its credibility. “Ultimately, it is the German taxpayer who carries the risk,” he said.

Mr Weidmann said the bond scheme, known as Outright Monetary Transactions (OMT), blurs the line between fiscal and monetary policy and encroaches on the terrain of parliaments. It leaves the ECB with the task of carrying out rescue operations that is the proper responsibility of the euro bail-out fund and compromises the bank’s independence.

The two-day hearings at the constitutional court in Karlsruhe will investigate the legality of the OMT, the “game-changer” that defused the EMU debt crisis last July and has been so successful that no country has yet needed to use it. The case stems from complaints by 37,000 citizens, including the Left Party, More Democracy and eurosceptic professors, most arguing that the ECB is financing bankrupt states.

While the court has no jurisdiction over the ECB, it could prohibit the Bundesbank from taking part in bond purchases. This amounts to the same thing, since the OMT would collapse if Germany stepped aside.
Chief Justice Andreas Vosskuhle said the court would adhere strictly to the law, regardless of whether ECB actions have been successful, “otherwise the end would justify the means – such an idea would go against the central tenets of a democratic state grounded in constitutional law".

The court has emerged as the arch-defender of national sovereignty in the EU system, vowing to strike down EU laws that breach Germany’s Grundgesetz and issuing a string of rulings that have constrained Berlin’s ability to take part in EMU bail-outs.

----The task of defending the ECB fell to Jorg Asmussen, Germany’s member on the executive board, and a former university friend of Mr Weidmann.

He said the ECB’s actions were “necessary, effective, and within the mandate” and denied that the OMT is tantamount to monetary financing of deficits. Recounting the dramatic events of mid-2012, he said fears of EMU break-up had caused Spain and Italian borrowing to spiral to levels that reflected currency risk. Action was needed to safeguard monetary union.

“Britain’s financial authorities were advising financial institutions to be prepared in the event of the euro area collapsing,” he said.
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UK challenges 'illegal' EU power to ban short-selling

The Government has challenged new European Union powers to regulate financial markets as "unlawful" and an "institutional revolution" by the back door, during a legal challenge in Europe's Luxembourg court.

Britain has gone to the European Court of Justice to overturn powers allowing a Paris-based regulator to ban short-selling as part of a campaign of legal challenges to rein in growing EU powers over financial regulation.
The European Securities and Markets Authority, or Esma, was given the unprecedented powers to ban short-selling after Britain lost a battle to stop the move and was outvoted in a council of EU finance ministers last year.

Jemima Stratford QC, the barrister representing the Government in the Luxembourg court challenge, insisted that the power, which is unique among Europe's regulatory agencies, was an illegal power grab in breach of the EU's treaties.

"There is a short point at the heart of this case. It is that the extensive discretion given to Esma is contrary to the institutional balance laid down in the treaties," she told the ECJ.

----Hubert Legal, the head of the legal service at the Council of the EU and most senior Brussels lawyer, argued that the question got to the heart of the debate about how the Union adapted to new challenges, within the existing Lisbon Treaty that entered into force in 2009.

"This is a case that we cannot afford to get wrong. It is not a case of symbolic importance only but a vital one for the ability of the Union to play its role in economic governance," he said.
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French airport strikes cause holiday chaos

British holidaymakers have been frustrated by cancellations and delays of up to nine hours as a strike by French air traffic controllers continues to cause havoc today.

By Melanie Hall 7:08AM BST 12 Jun 2013
The three-day strike by members of the European Transport Workers Federation began in France on Tuesday, forcing Ryanair to cancel 200 flights yesterday and 244 more today, while easyJet scrapped 128 flights, mainly to France.

Other airlines including British Airways were also forced to cancel a number of flights, and delays of up to nine hours across airlines were reported because of the dispute, which saw the number of movements across French airspace being cut by 50 per cent.

According to the International Air Transport Association, which represents 241 scheduled carriers, the action saw 400,000 minutes of delays across Europe yesterday as flight were diverted onto alternative routes.

The disruption is likely to worsen today when the strike spreads to Belgium, Slovakia and Hungary, where other members of the European Transport Workers Federation will join the action.
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State broadcaster ERT shut down as Greece seeks more savings

A government spokesman described the Hellenic Broadcasting Corporation as a 'haven of waste'
Tuesday 11 June 2013 18.58 BST
Greek state TV and radio were gradually pulled off the air late on Tuesday, hours after the government said it would temporarily close all state-run broadcasts and lay off about 2,500 workers as part of a cost-cutting drive demanded by the bailed-out country's international creditors.

TV and radio stations of the Hellenic Broadcasting Corporation, or ERT, were pulled off the air in several parts of the country from about 11pm (9pm BST), about an hour before the government said all signals would go dead, although satellite broadcasts continued.

The conservative-led government said ERT would reopen "as soon as possible" with a new, smaller workforce. It wasn't immediately clear how long that would take, and whether all stations would reopen.

"Congratulations to the Greek government," newscaster Antonis Alafogiorgos said toward the end of ERT's main TV live broadcast. "This is a blow to democracy."

----Thousands of media workers and supporters protested against the closure outside the company's headquarters in the Athens suburb of Aghia Paraskevi. Unions representing ERT workers at three terrestrial TV stations, one satellite station and its national and regional radio network said they would keep the stations on air. Protesting employees were joined by opposition politicians and union leaders. Both minority government partners of the ruling conservative coalition condemned the suspension.

Government spokesman Simos Kedikoglou – a former state TV journalist – described ERT as a "haven of waste". He said its employees would be compensated.

Kedikoglou said in a televised statement aired on the state broadcaster: "At a time when the Greek people are enduring sacrifices, there is no room for delay, hesitation or tolerance for sacred cows.
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We end with yet more on our ever more lawless age. Yes it’s the banksters again. It’s really not their fault. Like poor old Oscar Wilde, they can resist anything except temptation, especially the ability to steal from the Muppets. But don’t expect America’s secret eavesdroppers to bring them to book. Not at least while they can be persuaded to keep donating money to political parties.

"We have reason to believe you have committed an offence."

City of London, 1960s parking ticket.

Traders Said to Rig Currency Rates to Profit Off Clients

By Liam Vaughan, Gavin Finch & Ambereen Choudhury - Jun 12, 2013 12:00 AM GMT
Traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.

Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial. Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years.

The behavior occurred daily in the spot foreign-exchange market and has been going on for at least a decade, affecting the value of funds and derivatives, the two traders said. The Financial Conduct Authority, Britain’s markets supervisor, is considering opening a probe into potential manipulation of the rates, according to a person briefed on the matter.

“The FX market is like the Wild West,” said James McGeehan, who spent 12 years at banks before co-founding Framingham, Massachusetts-based FX Transparency LLC, which advises companies on foreign-exchange trading, in 2009. “It’s buyer beware.”

The $4.7-trillion-a-day currency market, the biggest in the financial system, is one of the least regulated. The inherent conflict banks face between executing client orders and profiting from their own trades is exacerbated because most currency trading takes place away from exchanges
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“The world is a place that’s gone from being flat to round to crooked.”

The Banker, with apologies to Mad Magazine.

At the Comex silver depositories Tuesday final figures were: Registered 41.76 Moz, Eligible 122.62 Moz, Total 164.38 Moz.  


Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally doubled over.

Today, the ever more lawless USSR of A. I wonder what the watchers have on House Speaker Boehner that he would come out so quickly and so vehemently in defence of the indefensible under America’s written constitution. Lacking a written constitution in the UK, Britain’s spooks have licence to kill as it were, just don’t get caught. Armed with the tapes and the data mined material, you can always get other evidence for any trial, assuming you don’t just don’t want to blackmail something from them.  Both countries spooks have access to bank and tax records, plus anything leaving a digital record. 

It will be interesting to see what else has been leaked from the land of the once free. The latest big lie is that it was all authorised and properly scrutinised. A lie likely to come crashing down in the next round of new articles sure to come out. With both US political parties deeply mired in this growing scandal, it looks like a reinvigorated Tea Party time lies ahead.

Quis custodiet ipsos custodes?

Obama's snooping -- this is America?

Nat Hentoff says his late immigrant parents would be shocked by today's headlines

My Jewish parents had changed their lives – inner and outer – by coming to America. When their son was old enough to go to school, they were determined not to send him to the prestigious Hebrew school on the street next to where they lived in Boston.

No, the boy was to be more fully Americanized by taking a sizable walk to the William Lloyd Garrison public elementary school in the neighborhood.

They are no longer here, but I can imagine their hurt had they read this on the front page of the June 7 Wall Street Journal: “The National Security Agency’s monitoring of Americans includes customer records from the three major phone networks as well as emails and Web searches, and the agency also has cataloged credit-card transactions” (“U.S. Collects Vast Data Trove,” Siobhan Gorman, Evan Perez and Janet Hook).

I would also have shown them a startling story by U.S. reporter and constitutional lawyer Glenn Greenwald, who covers American civil liberties et al. for the British newspaper the Guardian. He found a top-secret Obama program run by the NSA that had direct access to the Internet systems of “Google, Facebook, Apple and other U.S. Internet giants” (“NSA Prism program taps in to user data of Apple, Google and others,” Greenwald and Ewen MacAskill, June 6).

Included are huge quantities of personal information about us, such as “search history, the content of emails, file transfers and live chats.”

The program is called PRISM.

Were they here, my parents might have asked, “What happened to America?”

“His name,” I would tell them, “is Barack Obama.”
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House Speaker John Boehner: NSA Leaker a ‘Traitor’

Jun 11, 2013 7:00am
House Speaker John Boehner today called NSA leaker Edward Snowden a “traitor” who put Americans at risk by releasing classified information to the media.

“He’s a traitor,” the highest ranking Republican in the House of Representatives said in an extensive interview with ABC News’ George Stephanopoulos. “The disclosure of this information puts Americans at risk.  It shows our adversaries what our capabilities are.  And it’s a giant violation of the law.”

Boehner endorsed President Obama’s characterization of two programs, which allow the NSA to gather information about phone calls made in the U.S. as well as information on foreign suspects collected from major internet companies, as critical to the government’s ability to fight terrorism. He said that there are “clear safeguards” built into the programs to protect Americans.
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Ron Paul: I’m worried that the government might kill Edward Snowden with a drone

June 11, 2013 | 6:30 pm
During an interview with FOX Business, former Rep. Ron Paul explained that he was concerned about the well-being of National Security Agency whistle-blower Edward Snowden.

“I’m worried about somebody in our government might kill him with a cruise missile or a drone missile,” Paul explained. “I mean we live in a bad time where American citizens don’t even have rights and that they can be killed, but the gentlemen is trying to tell the truth about what’s going on.”

Paul added that there were no signs of Snowden defecting to a foreign country, which meant that he was not really a threat.

“It’s a shame that we are in an age where people who tell the truth about what the government is doing gets into trouble,” he concluded.
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Europe warns US: you must respect the privacy of our citizens

EU officials demand answers on what data snooping programmes entail and whether they breach human rights
Tuesday 11 June 2013 23.00 BST
European Union officials have demanded "swift and concrete answers" to their requests for assurances from the US that its mass data surveillance programmes do not breach the fundamental privacy rights of European citizens.

The European commission's vice-president, Viviane Reding, has sent a letter with seven detailed questions to the US attorney general, Eric Holder Jr, demanding explanations about Prism and other American data snooping programmes.

Reding warns him that "given the gravity of the situation and the serious concerns expressed in public opinion on this side of the Atlantic" she expects detailed answers before they meet at an EU-US justice ministers' meeting in Dublin on Friday.

She also warns Holder that people's trust that the rule of law will be respected – including a high level of privacy protection for both US and EU citizens – is essential to the growth of the digital economy, including transatlantic business and the nature of the US response could affect the whole transatlantic relationship.

In the letter, released to the Guardian, Reding details her serious concerns that the Americans are "accessing and processing, on a large scale, the data of EU citizens using major US online service providers". She says programmes such as Prism, and the laws that authorise them, could have "grave adverse consequences for the fundamental rights of EU citizens"

The EU's action came as the first constitutional challenge in the US to the widespread surveillance of American citizens was laid down. In a lawsuit filed in New York, the American Civil Liberties Union (ACLU) accused the US government of a process that was "akin to snatching every American's address book".

The ACLU's lawsuit claimed the National Security Agency's acquisition of phone records of millions of Verizon users violated the first and fourth amendments, which guarantee citizens' right to association, speech and to be free of unreasonable searches and seizures.
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I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of  credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most  completely controlled and dominated Governments in the civilized world no longer a  Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.

Woodrow  Wilson

The monthly Coppock Indicators finished May:
DJIA: +142 Up. NASDAQ: +144 Up. SP500: +177 Up.  The  Fed’s Final Bubble continues. But hurricanes and tornadoes appear. Getting out first beats getting out last.

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